GST and Tax Notices: Questions and Answers

Question 1

What should I do when I receive a GST show-cause notice?

Accepted Answer

Note the due date, read which section and which grounds are alleged, gather your records, and file a reply for each ground with supporting documents within the time given, often 30 days. Ignoring a notice usually leads to an order against you.

Question 2

What is the difference between Section 73 and Section 74 notices?

Accepted Answer

Section 73 covers tax short-paid or wrongly claimed without fraud, and Section 74 applies where fraud, wilful misstatement or suppression is alleged, with heavier penalties. For periods from 2024-25, Section 74A applies instead, so check which provision governs the period in your notice.

Question 3

Can I claim input tax credit if my supplier did not file returns?

Accepted Answer

Input tax credit is available only if the conditions in Section 16 are met, including that the tax has actually reached the government. A mismatch caused by a supplier's default can lead to the credit being reversed, though a buyer can show the purchase was genuine and pursue remedies.

Question 4

How do I appeal a GST order?

Accepted Answer

A first appeal goes to the Appellate Authority, generally within three months of the order, with a pre-deposit of part of the disputed tax. A further appeal lies to the GST Appellate Tribunal, which is now operational, and then to the High Court on questions of law.

Question 5

Can the GST department freeze my bank account?

Accepted Answer

In some situations, yes. The law allows provisional attachment during proceedings and attachment for recovery after a demand has been confirmed, but both are subject to conditions and can be challenged. Respond to the notice promptly and take advice at once if an account is attached.

Question 6

Can a cancelled GST registration be revoked?

Accepted Answer

Often yes. A revocation application is generally made within 30 days of the cancellation order, with limited extensions, and usually requires filing the pending returns and clearing dues. Acting quickly matters, because late revocation is much harder.